red states rule
03-02-2009, 09:11 AM
Obama and the Dems keep shelling out the cash - oblivious to the long term effects
Anyone enjoying the change yet?
AIG to get $30 billion in 4th bailout
Struggling insurer American International Group Inc. will receive up to $30 billion in additional federal assistance in the fourth government rescue of the company, a person familiar with the matter told the Associated Press on Sunday.
The new infusion is intended to prop up AIG - once the world's largest insurer - which is expected to announce $60 billion in quarterly losses early Monday, the source said on the condition of anonymity because the discussions are still ongoing.
The company, which is considered too large to fail, previously received about $150 billion in loans from the government, which now has an 80 percent stake in the company.
Under the new deal, the U.S. Treasury and the Federal Reserve would provide about $30 billion in fresh capital to AIG from the government's Troubled Assets Relief Program (TARP). The money would be provided as a standby line of equity that AIG could tap as its losses mount, the source said.
AIG has already received $40 billion from TARP.
In exchange for the latest infusion, the Federal Reserve would take stakes in two international units, the source said.
Instead of paying back $38 billion in cash with interest that it has used from a Federal Reserve credit line, AIG now will repay that amount with equity stakes Asia-based American International Assurance Co. and American Life Insurance Co., which operates in 50 countries.
Under the plan, another $20 billion from a Federal Reserve credit line remains available for borrowing, the source said.
http://www.washingtontimes.com/news/2009/mar/02/aig-to-get-30-billion-in-4th-bailout/
Anyone enjoying the change yet?
AIG to get $30 billion in 4th bailout
Struggling insurer American International Group Inc. will receive up to $30 billion in additional federal assistance in the fourth government rescue of the company, a person familiar with the matter told the Associated Press on Sunday.
The new infusion is intended to prop up AIG - once the world's largest insurer - which is expected to announce $60 billion in quarterly losses early Monday, the source said on the condition of anonymity because the discussions are still ongoing.
The company, which is considered too large to fail, previously received about $150 billion in loans from the government, which now has an 80 percent stake in the company.
Under the new deal, the U.S. Treasury and the Federal Reserve would provide about $30 billion in fresh capital to AIG from the government's Troubled Assets Relief Program (TARP). The money would be provided as a standby line of equity that AIG could tap as its losses mount, the source said.
AIG has already received $40 billion from TARP.
In exchange for the latest infusion, the Federal Reserve would take stakes in two international units, the source said.
Instead of paying back $38 billion in cash with interest that it has used from a Federal Reserve credit line, AIG now will repay that amount with equity stakes Asia-based American International Assurance Co. and American Life Insurance Co., which operates in 50 countries.
Under the plan, another $20 billion from a Federal Reserve credit line remains available for borrowing, the source said.
http://www.washingtontimes.com/news/2009/mar/02/aig-to-get-30-billion-in-4th-bailout/